Mortgage Compliance: The New Four Letter Word
Posted To: The Garrett Watts Report
I received the following email today from one of our readers: These compliance checks are killing my productivity. The environment is crazy. I just got a repurchase demand on a loan that {edited} bought THREE YEARS AGO and then subsequently sold in a small servicing sale. The servicer who purchased the loan identified an under disclosure on the TIL of $117 and is demanding repurchase for non-compliance with Federal disclosure law……..!!! THREE YEARS AGO!!!! How are we supposed to operate with that kind of foolishness going on…..!?! We’ve talked about trailing risk before. Every loan a mortgage banker sold in the past and sells in the future is not really a loan sold without recourse. Mortgage bankers have continuous risk that they might have to repurchase loans because...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.